TymeBank is cautioning customers and consumers in general not to let other people use their bank accounts, even if they are promised payment in return. If you do, you may be considered a “money mule”.

“There’s a risk that you may be helping criminals to commit crimes and hide the money they have illegally obtained, something that could see you being arrested for being a money mule,” warns TymeBank’s Head of Enterprise Risk and Fraud, George Wandsella.

“It can also damage your credit and financial standing.”

According to Wandsella, the increase in fraudulent account openings and transfers needs to be seen in the context of the recently published SABRIC Annual Crime Statistics, which indicate that banking on digital platforms “now exceeds all other transaction channels in South Africa and is also the safest.”

The rise in online transactions has been accompanied by a noticeable increase in mule account schemes in South Africa in the last few years, with criminals taking advantage of people’s vulnerability with the promise of easy money.

Targets are usually approached online or via social media platforms, with young people often lured into these schemes.

“TymeBank has robust security systems in place and besides protecting customer accounts, our technology also helps us monitor suspicious activity, but criminals are always looking for ways to hide their ill-gotten gains,” says Wandsella.

The methods typically used by criminals

• The fraudster asks the unsuspecting account holder to transfer money on their behalf into a third-party account in exchange for a fee.  Often the third-party account is at the same bank, so the transaction can be processed immediately.
• Someone approaches you and asks you to open a bank account online and then allow them to use it.  Often the excuse is that they are unable to open their own bank account for some reason that sounds innocent.
• Criminals use lost or stolen IDs to open mule accounts.

“Customers also need to play their part by following some simple rules,” says Wandsella. “Besides helping to fight the worldwide problem of money-laundering, it may also keep you out of jail.”

How to avoid becoming a money mule

• Don’t share your financial details or give access to your bank account to anyone you don’t know and trust.
• Don’t trust emails, texts or similar communication from someone who promises you money in exchange for doing very little.
• Be careful of opportunities offering you a way to make money quickly and easily. If you are presented with such an opportunity, don’t accept the offer, and report it to the police.
• Report a lost or stolen ID to the South African Fraud Prevention Services (SAFPS) on their website to prevent fraudsters opening a bank account or credit facilities using your details.

Forewarned is forearmed, so stay informed about the latest banking fraud and scams. You can visit the TymeBank website for some useful content on how to protect yourself from fraud and scams.

This article first appeared in City Press.